Welfare

Since the late 1930s, the federal government has provided funds to build public housing for the poor. Almost all programs rely on local public housing agencies created by state law or by a local government unit authorized by the state. Contracts between the HOUSING AND URBAN DEVELOPMENT DEPARTMENT and the local agency provide the means for the transfer of the federal funds.

Applicants for public housing must meet income requirements. So as not to penalize people for improving their financial condition, tenants usually can continue to live in public housing after they surpass the income level that admitted them to the project. As the tenant's income increases, he or she might be charged a higher rent so that the rent can be kept lower for other tenants with greater need. Federal law limits the percentage of a tenant's income that can be charged for rent in low-income housing projects.